The current account deficit (CAD) has contracted by a massive 55 per cent in the first two months of the current fiscal year as compared to the corresponding period last year, reported the State Bank of Pakistan (SBP) on Thursday.
The CAD — for the two month period — reduced by $1.56 billion to $1.29 billion from $2.85 billion during the same period last year.
This was in line with the downward trend witnessed throughout 2018-19 when the deficit stood lower by 31pc to $13.58bn, from $19.8bn in FY18 — recording a decrease of $6.3 billion.
The major cause of the shrink is the decline in the trade deficit.
According to the trade summary issued by the commerce ministry for the two months, exports jumped to $3.738 billion as compared to $3.650 billion during the same period last year — showing a decrease of 2.41pc or $88 million.
Similarly, imports for the period under review declined to $7.553 billion as compared to $9.768 billion during the same period last year — showing a decline of 22.68pc or $2.215 billion.